ABBA Songwriter Wins Swedish Royalties Case

by Ulrika Lomas, Tax-News.com, Brussels

16 October 2008

Bjorn Ulvaes, previously a member of ABBA and ‘Mamma Mia’ writer, has won an appeal against the Swedish Tax Authority.

Ulvaes has battled the authority for several years over the amount of tax due on royalty income received on his behalf, primarily earned from ABBA recordings.

The case centred on a company structure that Ulvaes had set up to pay him the royalties. Swedish authorities alleged that song royalty deals Ulvaes was involved in were shams to shelter them from being taxed as personal income at a higher rate of tax.

While royalties can be paid out to the copyright holder in person, many artists both in Sweden and abroad choose to transfer the rights to a company to mitigate tax liability.

Stockholm's County Administrative Court ruled in the musician's favour on all counts, allowing Ulvaeus to retain SEK85mn (USD12mn) that the Swedish Authorities claimed it was owed in taxes, interest and charges.

Relieved and USD12mn richer, Ulvaeus said that he hoped the judgment would help others in the industry facing similar problems at the hands of the tax authority.

Recommended